Financial Highlights
- Net income totaled $2.73 million for the third quarter of 2017, or
$0.19 per diluted common share, up 10.8% from $2.46 million for the
second quarter of 2017 and 32.9% from $2.05 million for the third
quarter of 2016.
- Net interest margin was 4.68% for the third quarter of 2017,
compared to 4.58% for the second quarter of 2017 and 4.46% for the
third quarter of 2016.
- Total assets were $876 million at September 30, 2017, up 4.9% from
$835 million at June 30, 2017, and up 21.4% from $722 million at
September 30, 2016.
- Net loans receivable were $727 million at September 30, 2017, up
4.8% from $694 million at June 30, 2017 and up 17.4% from $620 million
at September 30, 2016.
- Total deposits were $755 million at September 30, 2017, up 2.9%
from $733 million at June 30, 2017 and up 20.4% from $627 million at
September 30, 2016.
- Non-interest bearing deposits at September 30, 2017 were $289
million or 38.3% of total deposits.
- Non-performing assets to total assets were 0.08% at September 30,
2017, compared to 0.09% at June 30, 2017 and 0.13% at September 30,
2016.
LOS ANGELES--(BUSINESS WIRE)--
OP Bancorp (the “Company”) (OTCQB: OPBK), the holding company of Open
Bank (the “Bank”), today reported that net income for the third quarter
of 2017 was $2.73 million, or $0.19 per diluted common share. This
compares with net income of $2.46 million, or $0.18 per diluted share,
for the second quarter of 2017, and net income of $2.05 million, or
$0.15 per diluted share, for the third quarter of 2016.
“We are pleased to announce another successful quarter with the record
quarter net income of $2.73 million. I am hopeful that 2017 will be
another banner year. The Bank’s profitability continued to improve in
the third quarter with the net interest margin expanding to 4.68%, from
4.58% in the second quarter of 2017 and from 4.46% in the third quarter
of 2016,” stated Min Kim, President and Chief Executive Officer.
|
|
Quarter Financial Highlights
(in thousands, except per
share data)
|
|
|
| |
| | | As of or for the Three Months Ended |
| | | September 30,
2017 |
|
| June 30,
2017 |
|
| September 30,
2016 |
| Income Statement Data: | | | | | | | | | |
|
Net interest income
| | |
$
|
9,208
| | | |
$
|
8,594
| | | |
$
|
7,421
| |
|
Provision for loan losses
| | | |
278
| | | | |
170
| | | | |
677
| |
|
Non-interest income
| | | |
2,255
| | | | |
2,209
| | | | |
2,400
| |
|
Non-interest expense
| | |
|
6,744
|
| | |
|
6,552
|
| | |
|
5,701
|
|
|
Income before taxes
| | | |
4,441
| | | | |
4,081
| | | | |
3,443
| |
|
Provision for income taxes
| | |
|
1,713
|
| | |
|
1,618
|
| | |
|
1,391
|
|
|
Net Income
| | |
$
|
2,728
|
| | |
$
|
2,463
|
| | |
$
|
2,052
|
|
| Balance Sheet Data: | | | | | | | | | |
|
Loans held for sale
| | |
$
|
12,893
| | | |
$
|
3,549
| | | |
$
|
2,231
| |
|
Gross loans, net of unearned income
| | | |
736,058
| | | | |
702,413
| | | | |
627,171
| |
|
Allowance for loan losses
| | | |
8,909
| | | | |
8,556
| | | | |
7,615
| |
|
Total assets
| | | |
876,425
| | | | |
835,418
| | | | |
721,667
| |
|
Deposits
| | | |
754,533
| | | | |
732,940
| | | | |
626,878
| |
|
Shareholders’ equity
| | | |
89,478
| | | | |
86,738
| | | | |
78,792
| |
| Credit Quality: | | | | | | | | | |
|
Nonperforming loans
| | |
$
|
734
| | | |
$
|
781
| | | |
$
|
968
| |
|
Nonperforming assets
| | | |
734
| | | | |
781
| | | | |
968
| |
| Performance Ratios: | | | | | | | | | |
|
Net interest margin
| | | |
4.68
|
%
| | | |
4.58
|
%
| | | |
4.46
|
%
|
|
Efficiency ratio
| | | |
58.83
|
%
| | | |
60.65
|
%
| | | |
58.06
|
%
|
|
Pre-tax pre-provision income to average assets (annualized)
| | | |
2.27
|
%
| | | |
2.14
|
%
| | | |
2.37
|
%
|
|
Net charge-offs to average gross loans (annualized)
| | | |
-0.04
|
%
| | | |
0.00
|
%
| | | |
0.09
|
%
|
|
Nonperforming assets to gross loans plus OREO
| | | |
0.10
|
%
| | | |
0.11
|
%
| | | |
0.15
|
%
|
|
ALLL to nonperforming loans
| | | |
1,214
|
%
| | | |
1,096
|
%
| | | |
787
|
%
|
|
ALLL to gross loans
| | | |
1.19
|
%
| | | |
1.22
|
%
| | | |
1.21
|
%
|
| Capital Ratios: | | | | | | | | | |
|
Tangible common equity to tangible assets
| | | |
10.21
|
%
| | | |
10.38
|
%
| | | |
10.92
|
%
|
|
Leverage ratio
| | | |
10.77
|
%
| | | |
10.89
|
%
| | | |
11.29
|
%
|
|
Common Equity Tier 1 ratio
| | | |
12.02
|
%
| | | |
12.36
|
%
| | | |
12.70
|
%
|
|
Tier 1 risk-based capital ratio
| | | |
12.02
|
%
| | | |
12.36
|
%
| | | |
12.70
|
%
|
|
Total risk-based capital ratio
| | | |
13.23
|
%
| | | |
13.60
|
%
| | | |
13.95
|
%
|
| | | | | | | | | | | | | | |
|
Results of Operations
Net interest income before loan loss provision was $9.2 million for the
three months ended September 30, 2017, an increase of 7.1% from $8.6
million for the second quarter of 2017, and an increase of 24.1% from
$7.4 million for the third quarter of 2016. The increases from the
second quarter of 2017 and the third quarter of 2016 were the results of
continued growth in interest earning assets, mostly loans, and
improvements in net interest margin.
Average gross loans, including held-for-sale loans, were $721 million
for the third quarter of 2017, an increase of $27 million, or 4.0%, from
$693 million for the second quarter of 2017 and an increase of $113
million, or 18.6%, from $608 million for the third quarter of 2016.
The net interest margin for the third quarter of 2017 was 4.68%, a 10
basis point increase from 4.58% for the second quarter of 2017, and a 22
basis point increase from 4.46% for the third quarter of 2016. Excluding
impacts from non-recurring items, such as discount accretions from SBA
loan payoffs, FHLB special dividend and non-accrual loans, the net
interest margin for the third quarter of 2017 was 4.49%, up 3 basis
points compared to 4.46% for the second quarter of 2017, and up 21 basis
points from 4.28% for the third quarter of 2016.
The net interest margin expansions from the second quarter of 2017 and
the third quarter of 2016 were primarily due to higher increases in
average yield on gross loans than increases in average cost of funds.
The increases were primarily due to increases in the fed funds rate
during the period, which positively impacted our net interest margin.
The fed funds rate increased three times, or 75 basis points, since
December 2016. Average yield on gross loans for the third quarter of
2017 increased 17 basis points from the second quarter 2017 and 32 basis
points from the third quarter of 2016. Average cost of funds for the
third quarter of 2017 increased 8 basis points from the second quarter
of 2017 and 11 basis points increased from the third quarter of 2016.
The following table shows the asset yields, liability costs, spreads and
margins.
|
|
| |
| | |
Three Months Ended
|
| | | September 30,
2017
|
|
| June 30,
2017
|
|
| September 30,
2016
|
| | | | | | | | |
|
|
Yield on gross loans
| | |
5.57
|
%
| | |
5.40
|
%
| | |
5.25
|
%
|
|
Yield on interest-earning assets
| | |
5.29
|
%
| | |
5.11
|
%
| | |
4.96
|
%
|
|
Cost of interest-bearing liabilities
| | |
1.01
|
%
| | |
0.91
|
%
| | |
0.83
|
%
|
|
Cost of deposits
| | |
0.64
|
%
| | |
0.57
|
%
| | |
0.54
|
%
|
|
Cost of funds
| | |
0.65
|
%
| | |
0.57
|
%
| | |
0.54
|
%
|
|
Net interest spread
| | |
4.28
|
%
| | |
4.20
|
%
| | |
4.13
|
%
|
|
Net interest margin
| | |
4.68
|
%
| | |
4.58
|
%
| | |
4.46
|
%
|
| | | | | | | | | | | |
|
Loan loss provision for the third quarter of 2017 was $278 thousand,
compared to $170 thousand for the second quarter of 2017 and $677
thousand for the third quarter of 2016.
Non-interest income was $2.26 million for the third quarter of 2017, up
2.1% from $2.21 million for the second quarter of 2017, and down 6% from
$2.40 million for the third quarter of 2016. The changes were primarily
due to changes in net gains on sale of SBA loans for the third quarter
of 2017 compared to the second quarter of 2017 and the third quarter of
2016.
Net gain on sale of SBA loans totaled $1.2 million for the third quarter
of 2017, compared to $1.1 million for the second quarter of 2017 and
$1.5 million for the third quarter of 2016. Sale of SBA loans for the
third quarter of 2017 was $15.0 million, compared to $16.2 million for
the second quarter of 2017 and $25.3 million for the third quarter of
2016. The average premium on the sale of SBA loans for the third quarter
of 2017 was 9.8%, compared to 8.6% for the second quarter of 2017 and
8.3% for the third quarter of 2016.
Non-interest expense increased $192 thousand, or 2.9%, to $6.7 million
for the third quarter of 2017, compared to $6.6 million for the second
quarter of 2017. Compared to the third quarter of 2016, non-interest
expense increased $1.0 million, or 18.3%, primarily due to increased
operating expenses to support continued growth of the Company.
Salary & employee benefits expenses increased $139 thousand from the
second quarter of 2017 and $851 thousand from the third quarter of 2016
as the number of full time equivalent employees increased to 131.5 at
September 30, 2017 from 128.5 at June 30, 2017 and 126.5 at September
30, 2016. The increases in data processing, occupancy, and business
development expenses totaled $25 thousand from the second quarter of
2017 and $146 thousand from the third quarter of 2016.
The effective tax rate for the third quarter of 2017 was 38.6%, compared
to 39.6% for the second quarter of 2017 and 40.4% for the third quarter
of 2016.
Balance Sheet
Total assets were $876.4 million at September 30, 2017, an increase of
$41.0 million, or 4.9% from $835.4 million at June 30, 2017, and an
increase of $154.8 million, or 21.4%, from $721.7 million at September
30, 2016. Gross loans, net of unearned income, were $736.1 million at
September 30, 2017, an increase of $33.6 million, or 4.8%, from $702.4
million at June 30, 2017, and an increase of $108.9 million, or 17.4%,
from $627.2 million at September 30, 2016.
New loan originations for the third quarter of 2017 totaled $87.5
million, including SBA loan originations of $34.6 million, compared to
$70.0 million, including SBA loan originations of $24.1 million for the
second quarter of 2017. New loan originations for the third quarter of
2016 were $93.2 million, including SBA loan originations of $21.5
million. Loan payoffs for the third quarter of 2017 were $28.2 million,
compared to $32.4 million for the second quarter of 2017, and $18.8
million for the third quarter of 2016.
Total deposits were $754.5 million at September 30, 2017, an increase of
$21.6 million, or 2.9% from $732.9 million at June 30, 2017, and an
increase of $127.7 million, or 20.4%, from $626.9 million at September
30, 2016. Non-interest bearing deposits were $289.2 million at September
30, 2017, an increase of $2.3 million, or 0.8%, from $286.9 million at
June 30, 2017, and an increase of $61.4 million, or 27.0%, from $227.7
million at September 30, 2016.
Non-interest bearing deposits accounted for 38.3% of total deposits at
September 30, 2017, compared to 39.1% at June 30, 2017 and 36.3% at
September 30, 2016.
|
|
| |
|
| |
|
| |
| | | September 30,
2017
| | | June 30,
2017
| | | September 30,
2016
|
| | | | | | | | |
|
|
Non-interest bearing deposits
| | |
38.3
|
%
| | |
39.1
|
%
| | |
36.3
|
%
|
|
Interest bearing demand deposits
| | |
34.6
|
%
| | |
34.6
|
%
| | |
34.3
|
%
|
|
Savings
| | |
0.5
|
%
| | |
0.7
|
%
| | |
0.4
|
%
|
|
Time deposits over $250,000 | | |
12.8
|
%
| | |
11.7
|
%
| | |
12.4
|
%
|
|
Other time deposits
| | |
13.8
|
%
| | |
13.9
|
%
| | |
16.6
|
%
|
|
Total deposits
| | |
100.0
|
%
| | |
100.0
|
%
| | |
100.0
|
%
|
| | | | | | | | |
|
There was $25 million in borrowing from the Federal Home Loan Bank
(“FHLB”) at September 30, 2017, compared to $10 million at June 30, 2017
and $10 million at September 30, 2016.
At September 30, 2017, the Company continued to exceed all regulatory
capital requirements to be classified as “well-capitalized,” as
summarized in the following table.
|
|
| |
|
| |
|
| |
| | | September 30,
2017
| | | June 30,
2017
| | | September 30,
2016
|
| | | | | | | | |
|
|
Tier 1 leverage capital ratio
| | |
10.77
|
%
| | |
10.89
|
%
| | |
11.29
|
%
|
|
CET 1 capital ratio
| | |
12.02
|
%
| | |
12.36
|
%
| | |
12.70
|
%
|
|
Tier 1 risk-based capital ratio
| | |
12.02
|
%
| | |
12.36
|
%
| | |
12.70
|
%
|
|
Total risk-based capital ratio
| | |
13.23
|
%
| | |
13.60
|
%
| | |
13.95
|
%
|
| | | | | | | | | | | |
|
At September 30, 2017, the tangible common equity represented 10.21% of
tangible assets, compared to 10.38% at June 30, 2017 and 10.92% at
September 30, 2016. The tangible common equity to tangible assets ratio
is a non-GAAP financial measure that represents common equity less
goodwill and other net intangible assets divided by total assets less
goodwill and other net intangible assets. Management reviews the
tangible common equity to tangible assets ratio to evaluate the
Company’s capital levels.
Asset Quality
Loan loss provision for the third quarter of 2017 was $278 thousand,
compared to $170 thousand for the second quarter of 2017 and $677
thousand for the third quarter of 2016. Non-performing assets were $734
thousand, or 0.08% of total assets, at September 30, 2017, $781
thousand, or 0.09% of total assets, at June 30, 2017 and $968 thousand,
or 0.13% of total assets, at September 30, 2016. There was no other real
estate owned (“OREO”) at September 30, 2017, June 30, 2017, or September
30, 2016.
Non-performing loans to gross loans were 0.10% at September 30, 2017,
compared to 0.11% at June 30, 2017 and 0.15% at September 30, 2016.
Total classified loans were $2.1 million, or 0.29% of gross loans, at
September 30, 2017, compared to $2.6 million, or 0.36% of gross loans,
at June 30, 2017 and $1.3 million, or 0.21% of gross loans, at September
30, 2016.
The allowance for loan losses was $8.9 million at September 30, 2017,
compared to $8.6 million at June 30, 2017 and $7.6 million at September
30, 2016. The allowance for loan losses was 1.19% of gross loans at
September 30, 2017 and 1.22% at June 30, 2017 and 1.21% at September 30,
2016.
Use of Non-GAAP Financial Measures. This
document may contain GAAP financial measures and non-GAAP financial
measures where management believes it to be helpful in understanding the
Company’s results of operations or financial position. Where non-GAAP
financial measures are used, the comparable GAAP financial measure, as
well as the reconciliation to the comparable GAAP financial measure, can
be found in this earnings release, which can be found on Open Bank’s
website at www.myopenbank.com.
About OP Bancorp
OP Bancorp, the holding company for Open Bank, is a California
corporation whose common stock is traded on the OTCQB under the ticker
symbol, “OPBK.” Open Bank (the "Bank") is engaged in the general
commercial banking business in Los Angeles and Orange Counties and is
focused on serving the banking needs of small- and medium-sized
businesses, professionals, and residents with a particular emphasis on
Korean and other ethnic minority communities. The Bank currently
operates with seven full branch offices in Downtown Los Angeles, Los
Angeles Fashion District, Los Angeles Koreatown, Gardena and Buena Park.
The Bank also has three loan production offices in Seattle, Washington,
Dallas, Texas, and Atlanta, Georgia. The Bank commenced its operations
on June 10, 2005 as First Standard Bank and changed its name to Open
Bank in October 2010. Its headquarters is located at 1000 Wilshire
Blvd., Suite 500, Los Angeles, California 90017. Phone 213.892.9999; www.myopenbank.comMember FDIC, Equal Housing Lender
Safe Harbor Statement
This press release contains certain forward-looking information about OP
Bancorp that is intended to be covered by the safe harbor for
“forward-looking statements” provided by the Private Securities
Litigation Reform Act of 1995. All statements other than statements of
historical fact are forward-looking statements, including statements
about the Company’s successful implementation of its strategies
resulting in significant increase in non-interest bearing deposits.
These forward-looking statements may include, but are not limited to,
such words as "believes," "expects," "anticipates," "intends," "plans,"
"estimates," "may," "will," "should," "could," "predicts," "potential,"
"continue," or the negative of such terms and other comparable
terminology or similar expressions and may include statements about the
Company’s focus on exploring new opportunities, building customer
relationship through core deposits, growing core deposits, and improving
asset quality. Forward-looking statements are not guarantees. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of OP Bancorp
such as the ability of the new branch to attract sufficient number of
customers, deposits and new business to become profitable. OP Bancorp
cautions readers that a number of important factors could cause actual
results to differ materially from those expressed in, or implied or
projected by, such forward-looking statements. If any of these risks or
uncertainties materializes or if any of the assumptions underlying such
forward-looking statements proves to be incorrect, OP Bancorp’s results
could differ materially from those expressed in, or implied or projected
by such forward-looking statements. OP Bancorp assumes no obligation to
update such forward-looking statements, except as required by law.
|
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
| Balance Sheet | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
(Dollars in thousand, except per share data)
| | | September 30,
2017 | | | June 30,
2017 | | | $ change | | | % change | | | September 30,
2016 | | | $ change | | | % change | | | |
| | | (Unaudited) | | | (Unaudited) | | | | | | | | | (Unaudited) | | | | | | | | | |
| Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Cash and due from banks
| | |
$
|
53,961
| | | |
$
|
67,533
| | | |
$
|
(13,572
|
)
| | | |
-20.1
|
%
| | |
$
|
29,986
| | | |
$
|
23,975
| | | | |
80.0
|
%
| | | |
|
Investment securities
| | | |
43,578
| | | | |
32,557
| | | | |
11,021
| | | | |
33.9
|
%
| | | |
38,038
| | | | |
5,540
| | | | |
14.6
|
%
| | | |
|
Loans held for sale
| | | |
12,893
| | | | |
3,549
| | | | |
9,344
| | | | |
263.3
|
%
| | | |
2,231
| | | | |
10,662
| | | | |
477.9
|
%
| | | |
|
Real Estate Loans
| | | |
406,084
| | | | |
382,789
| | | | |
23,295
| | | | |
6.1
|
%
| | | |
344,469
| | | | |
61,615
| | | | |
17.9
|
%
| | | |
|
SBA Loans
| | | |
114,924
| | | | |
108,152
| | | | |
6,772
| | | | |
6.3
|
%
| | | |
97,597
| | | | |
17,327
| | | | |
17.8
|
%
| | | |
|
C & I Loans
| | | |
107,186
| | | | |
103,723
| | | | |
3,463
| | | | |
3.3
|
%
| | | |
77,448
| | | | |
29,738
| | | | |
38.4
|
%
| | | |
|
Home Mortgage Loans
| | | |
102,133
| | | | |
102,269
| | | | |
(136
|
)
| | | |
-0.1
|
%
| | | |
102,219
| | | | |
(86
|
)
| | | |
-0.1
|
%
| | | |
|
Consumer & Other Loans
| | |
|
5,731
|
| | |
|
5,481
|
| | |
|
250
|
| | |
|
4.6
|
%
| | |
|
5,438
|
| | |
|
293
|
| | |
|
5.4
|
%
| | | |
|
Gross loans, net of unearned income
| | | |
736,058
| | | | |
702,413
| | | | |
33,645
| | | | |
4.8
|
%
| | | |
627,171
| | | | |
108,887
| | | | |
17.4
|
%
| | | |
|
Allowance for loan losses
| | | |
(8,909
|
)
| | | |
(8,556
|
)
| | | |
(353
|
)
| | | |
-4.1
|
%
| | | |
(7,615
|
)
| | | |
(1,294
|
)
| | | |
-17.0
|
%
| | | |
|
Net loans receivable
| | | |
727,149
| | | | |
693,857
| | | | |
33,292
| | | | |
4.8
|
%
| | | |
619,556
| | | | |
107,593
| | | | |
17.4
|
%
| | | |
|
Bank premises and equipment, net
| | | |
4,442
| | | | |
4,654
| | | | |
(212
|
)
| | | |
-4.6
|
%
| | | |
5,311
| | | | |
(869
|
)
| | | |
-16.4
|
%
| | | |
|
Accrued interest receivable
| | | |
2,182
| | | | |
2,031
| | | | |
151
| | | | |
7.4
|
%
| | | |
1,767
| | | | |
415
| | | | |
23.5
|
%
| | | |
|
FHLB and Pacific Coast Bankers Bank Stock, at cost
| | | |
4,287
| | | | |
4,287
| | | | |
0
| | | | |
0.0
|
%
| | | |
3,438
| | | | |
849
| | | | |
24.7
|
%
| | | |
|
Servicing assets
| | | |
6,957
| | | | |
6,964
| | | | |
(7
|
)
| | | |
-0.1
|
%
| | | |
6,415
| | | | |
542
| | | | |
8.4
|
%
| | | |
|
Net deferred taxes
| | | |
3,546
| | | | |
3,534
| | | | |
12
| | | | |
0.3
|
%
| | | |
1,436
| | | | |
2,110
| | | | |
146.9
|
%
| | | |
|
Other assets
| | |
|
17,430
|
| | |
|
16,451
|
| | |
|
979
|
| | |
|
6.0
|
%
| | |
|
13,489
|
| | |
|
3,941
|
| | |
|
29.2
|
%
| | | |
|
Total assets
| | |
$
|
876,425
|
| | |
$
|
835,418
|
| | |
$
|
41,007
|
| | |
|
4.9
|
%
| | |
$
|
721,667
|
| | |
$
|
154,758
|
| | |
|
21.4
|
%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Noninterest bearing deposits
| | |
$
|
289,154
| | | |
$
|
286,900
| | | |
$
|
2,254
| | | | |
0.8
|
%
| | |
$
|
227,745
| | | |
$
|
61,409
| | | | |
27.0
|
%
| | | |
|
Savings
| | | |
3,809
| | | | |
5,130
| | | | |
(1,321
|
)
| | | |
-25.8
|
%
| | | |
2,668
| | | | |
1,141
| | | | |
42.8
|
%
| | | |
|
Money market and others
| | | |
260,930
| | | | |
253,315
| | | | |
7,615
| | | | |
3.0
|
%
| | | |
214,582
| | | | |
46,348
| | | | |
21.6
|
%
| | | |
|
Time deposits over $250,000 | | | |
96,641
| | | | |
85,918
| | | | |
10,723
| | | | |
12.5
|
%
| | | |
77,696
| | | | |
18,945
| | | | |
24.4
|
%
| | | |
|
Other time deposits
| | |
|
103,999
|
| | |
|
101,677
|
| | |
|
2,322
|
| | |
|
2.3
|
%
| | |
|
104,187
|
| | |
|
(188
|
)
| | |
|
-0.2
|
%
| | | |
|
Total deposits
| | | |
754,533
| | | | |
732,940
| | | | |
21,593
| | | | |
2.9
|
%
| | | |
626,878
| | | | |
127,655
| | | | |
20.4
|
%
| | | |
|
Other borrowings
| | | |
25,000
| | | | |
10,000
| | | | |
15,000
| | | | |
150.0
|
%
| | | |
10,000
| | | | |
15,000
| | | | |
150.0
|
%
| | | |
|
Other liabilities
| | |
|
7,414
|
| | |
|
5,740
|
| | |
|
1,674
|
| | |
|
29.2
|
%
| | |
|
5,997
|
| | |
|
1,417
|
| | |
|
23.6
|
%
| | | |
|
Total liabilities
| | | |
786,947
| | | | |
748,680
| | | | |
38,267
| | | | |
5.1
|
%
| | | |
642,875
| | | | |
144,072
| | | | |
22.4
|
%
| | | |
|
Total shareholders' equity
| | |
|
89,478
|
| | |
|
86,738
|
| | |
|
2,740
|
| | |
|
3.2
|
%
| | |
|
78,792
|
| | |
|
10,686
|
| | |
|
13.6
|
%
| | | |
|
Total Liabilities and Shareholders' Equity
| | |
$
|
876,425
|
| | |
$
|
835,418
|
| | |
$
|
41,007
|
| | |
|
4.9
|
%
| | |
$
|
721,667
|
| | |
$
|
154,758
|
| | |
|
21.4
|
%
| | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Statement of Operations | | | | | | | | | | | | | | | | | | | | | | | | |
|
(Dollars in thousand, except per share data)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three Months Ended |
|
| Nine Months Ended |
| | | September 30,
2017 | | | June 30,
2017 | | | % change | | | September 30,
2016 | | | % change | | | September 30,
2017 | | | September 30,
2016 | | | % change |
|
|
Interest income
| | |
$
|
10,419
| | | |
$
|
9,601
| | | | |
8.5
|
%
| | |
$
|
8,254
| | | | |
26.2
|
%
| | |
$
|
29,205
| | | |
$
|
22,935
| | | |
27.3
|
%
|
|
Interest expense
| | |
|
1,211
|
| | |
|
1,007
|
| | |
|
20.3
|
%
| | |
|
833
|
| | |
|
45.4
|
%
| | |
|
3,197
|
| | |
|
2,484
|
| | |
28.7
|
%
|
|
Net interest income
| | | |
9,208
| | | | |
8,594
| | | | |
7.1
|
%
| | | |
7,421
| | | | |
24.1
|
%
| | | |
26,008
| | | | |
20,451
| | | |
27.2
|
%
|
|
Provision for loan losses
| | | |
278
| | | | |
170
| | | | |
63.5
|
%
| | | |
677
| | | | |
-58.9
|
%
| | | |
989
| | | | |
1,359
| | | |
-27.2
|
%
|
|
Non interest income
| | | |
2,255
| | | | |
2,209
| | | | |
2.1
|
%
| | | |
2,400
| | | | |
-6.0
|
%
| | | |
6,708
| | | | |
6,474
| | | |
3.6
|
%
|
|
Non interest expense
| | |
|
6,744
|
| | |
|
6,552
|
| | |
|
2.9
|
%
| | |
|
5,701
|
| | |
|
18.3
|
%
| | |
|
19,685
|
| | |
|
16,907
|
| | |
16.4
|
%
|
|
Income before income taxes
| | | |
4,441
| | | | |
4,081
| | | | |
8.8
|
%
| | | |
3,443
| | | | |
29.0
|
%
| | | |
12,042
| | | | |
8,659
| | | |
39.1
|
%
|
|
Provision for income taxes
| | |
|
1,713
|
| | |
|
1,618
|
| | |
|
5.9
|
%
| | |
|
1,391
|
| | |
|
23.1
|
%
| | |
|
4,705
|
| | |
|
3,487
|
| | |
34.9
|
%
|
|
Net income (loss)
| | |
$
|
2,728
|
| | |
$
|
2,463
|
| | |
|
10.8
|
%
| | |
$
|
2,052
|
| | |
|
32.9
|
%
| | |
$
|
7,337
|
| | |
$
|
5,172
|
| | |
41.9
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Pre-tax Pre-provision Income
| | |
$
|
4,719
| | | |
$
|
4,251
| | | | |
11.0
|
%
| | |
$
|
4,120
| | | | |
14.5
|
%
| | |
$
|
13,031
| | | |
$
|
10,018
| | | |
30.1
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Book Value
| | |
$
|
6.80
| | | |
$
|
6.65
| | | | |
2.2
|
%
| | |
$
|
6.12
| | | | |
11.1
|
%
| | |
$
|
6.80
| | | |
$
|
6.12
| | | |
11.1
|
%
|
|
Basic EPS
| | |
$
|
0.20
| | | |
$
|
0.18
| | | | |
10.6
|
%
| | |
$
|
0.15
| | | | |
32.0
|
%
| | |
$
|
0.54
| | | |
$
|
0.38
| | | |
41.1
|
%
|
|
Diluted EPS
| | |
$
|
0.19
| | | |
$
|
0.18
| | | | |
10.4
|
%
| | |
$
|
0.15
| | | | |
31.6
|
%
| | |
$
|
0.52
| | | |
$
|
0.37
| | | |
40.7
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Shares of common stock outstanding
| | | |
13,162,732
| | | | |
13,045,833
| | | | |
0.9
|
%
| | | |
12,873,906
| | | | |
2.2
|
%
| | | |
13,162,732
| | | | |
12,873,906
| | | |
2.2
|
%
|
|
Weighted Average Shares:
| | | | | | | | | | | | | | | | | | | | | | | | |
|
- Basic
| | | |
13,132,237
| | | | |
13,008,985
| | | | |
0.9
|
%
| | | |
12,840,826
| | | | |
2.3
|
%
| | | |
13,023,145
| | | | |
12,757,629
| | | |
2.1
|
%
|
|
- Diluted
| | | |
13,560,140
| | | | |
13,409,230
| | | | |
1.1
|
%
| | | |
13,221,598
| | | | |
2.6
|
%
| | | |
13,432,746
| | | | |
13,124,438
| | | |
2.3
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| | | Three Months Ended |
|
| Nine Months Ended |
| | | September 30,
2017 | | | June 30,
2017 | | | % change | | | September 30,
2016 | | | % change | | | September 30,
2017 | | | September 30,
2016 | | | % change |
|
| Key Ratios | | | | | | | | | | | | | | | | | | | | | | | | |
|
Return on average assets (ROA)*
| | | |
1.31
|
%
| | | |
1.24
|
%
| | | |
0.07
|
%
| | | |
1.18
|
%
| | | |
0.13
|
%
| | | |
1.22
|
%
| | | |
1.04
|
%
| | |
0.18
|
%
|
|
Return on average equity (ROE) *
| | | |
12.35
|
%
| | | |
11.55
|
%
| | | |
0.80
|
%
| | | |
10.51
|
%
| | | |
1.84
|
%
| | | |
11.45
|
%
| | | |
9.13
|
%
| | |
2.32
|
%
|
|
Net interest margin *
| | | |
4.68
|
%
| | | |
4.58
|
%
| | | |
0.10
|
%
| | | |
4.46
|
%
| | | |
0.22
|
%
| | | |
4.58
|
%
| | | |
4.31
|
%
| | |
0.27
|
%
|
|
Net Interest Margin, excl. non-recurring items *
| | | |
4.49
|
%
| | | |
4.46
|
%
| | | |
0.03
|
%
| | | |
4.28
|
%
| | | |
0.21
|
%
| | | |
4.44
|
%
| | | |
4.15
|
%
| | |
0.29
|
%
|
|
Efficiency ratio
| | | |
58.83
|
%
| | | |
60.65
|
%
| | | |
-1.82
|
%
| | | |
58.06
|
%
| | | |
0.77
|
%
| | | |
60.17
|
%
| | | |
62.79
|
%
| | |
-2.62
|
%
|
|
Pre-tax pre-provision income to average assets*
| | | |
2.27
|
%
| | | |
2.14
|
%
| | | |
0.13
|
%
| | | |
2.37
|
%
| | | |
-0.10
|
%
| | | |
2.17
|
%
| | | |
2.01
|
%
| | |
0.16
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Tangible common equity to tangible assets
| | | |
10.21
|
%
| | | |
10.38
|
%
| | | |
-0.17
|
%
| | | |
10.92
|
%
| | | |
-0.71
|
%
| | | |
10.21
|
%
| | | |
10.92
|
%
| | |
-0.71
|
%
|
|
Tier 1 Leverage Ratio
| | | |
10.77
|
%
| | | |
10.89
|
%
| | | |
-0.12
|
%
| | | |
11.29
|
%
| | | |
-0.52
|
%
| | | |
10.77
|
%
| | | |
11.29
|
%
| | |
-0.52
|
%
|
|
Common Equity Tier 1 Ratio
| | | |
12.02
|
%
| | | |
12.36
|
%
| | | |
-0.34
|
%
| | | |
12.70
|
%
| | | |
-0.68
|
%
| | | |
12.02
|
%
| | | |
12.70
|
%
| | |
-0.68
|
%
|
|
Tier 1 Capital Ratio
| | | |
12.02
|
%
| | | |
12.36
|
%
| | | |
-0.34
|
%
| | | |
12.70
|
%
| | | |
-0.68
|
%
| | | |
12.02
|
%
| | | |
12.70
|
%
| | |
-0.68
|
%
|
|
Total Risk Based Capital Ratio
| | | |
13.23
|
%
| | | |
13.60
|
%
| | | |
-0.37
|
%
| | | |
13.95
|
%
| | | |
-0.72
|
%
| | | |
13.23
|
%
| | | |
13.95
|
%
| | |
-0.72
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Average Balances | | | | | | | | | | | | | | | | | | | | | | | | |
|
Investments
| | |
$
|
60,767
| | | |
$
|
59,203
| | | | |
2.6
|
%
| | |
$
|
54,617
| | | | |
11.3
|
%
| | |
$
|
58,977
| | | |
$
|
70,402
| | | |
-16.2
|
%
|
|
Gross loans, including loans held for sale
| | | |
720,880
| | | | |
693,466
| | | | |
4.0
|
%
| | | |
607,636
| | | | |
18.6
|
%
| | | |
699,945
| | | | |
562,973
| | | |
24.3
|
%
|
|
Interest earning assets
| | | |
781,647
| | | | |
752,670
| | | | |
3.8
|
%
| | | |
662,252
| | | | |
18.0
|
%
| | | |
758,921
| | | | |
633,375
| | | |
19.8
|
%
|
|
Total assets
| | |
$
|
829,834
| | | |
$
|
794,966
| | | | |
4.4
|
%
| | |
$
|
694,998
| | | | |
19.4
|
%
| | |
$
|
801,749
| | | |
$
|
665,116
| | | |
20.5
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Noninterest bearing deposits
| | |
$
|
260,863
| | | |
$
|
258,912
| | | | |
0.8
|
%
| | |
$
|
213,023
| | | | |
22.5
|
%
| | |
$
|
252,080
| | | |
$
|
185,709
| | | |
35.7
|
%
|
|
Interest bearing deposits
| | | |
454,995
| | | | |
442,526
| | | | |
2.8
|
%
| | | |
380,038
| | | | |
19.7
|
%
| | | |
449,688
| | | | |
379,561
| | | |
18.5
|
%
|
|
Total deposits
| | | |
715,858
| | | | |
701,438
| | | | |
2.1
|
%
| | | |
593,061
| | | | |
20.7
|
%
| | | |
701,768
| | | | |
565,270
| | | |
24.1
|
%
|
|
Interest bearing liabilities
| | | |
474,354
| | | | |
445,330
| | | | |
6.5
|
%
| | | |
398,914
| | | | |
18.9
|
%
| | | |
458,542
| | | | |
398,783
| | | |
15.0
|
%
|
|
Shareholders' equity
| | | |
88,373
| | | | |
85,324
| | | | |
3.6
|
%
| | | |
78,051
| | | | |
13.2
|
%
| | | |
85,448
| | | | |
75,524
| | | |
13.1
|
%
|
|
Net interest earning assets
| | |
$
|
307,293
| | | |
$
|
307,339
| | | | |
0.0
|
%
| | |
$
|
263,338
| | | | |
16.7
|
%
| | |
$
|
300,379
| | | |
$
|
234,592
| | | |
28.0
|
%
|
| | | | | | | | | | | | | | | | | | | | | | | |
|
| Asset Quality | | | 9/30/2017 | | | 6/30/2017 | | | 3/31/2017 | | | 12/31/2016 | | | 9/30/2016 | | | | | | | | | |
|
Nonaccrual Loans
| | | |
377
| | | | |
421
| | | | |
-
| | | | |
209
| | | | |
597
| | | | | | | | | | |
|
Loans 90 days or more past due, accruing
| | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | |
-
| | | | | | | | | | |
|
Accruing Restructured Loans
| | |
| 357 |
| | |
| 360 |
| | |
| 364 |
| | |
| 367 |
| | |
| 371 |
| | | | | | | | | |
|
Total Non-Performing Loans
| | | |
734
| | | | |
781
| | | | |
364
| | | | |
576
| | | | |
968
| | | | | | | | | | |
|
Other Real Estate Loans (OREO)
| | |
| - |
| | |
| - |
| | |
| - |
| | |
| - |
| | |
| - |
| | | | | | | | | |
|
Total Non-Performing Assets
| | | |
734
| | | | |
781
| | | | |
364
| | | | |
576
| | | | |
968
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Classified Loans
| | | |
2,138
| | | | |
2,561
| | | | |
2,065
| | | | |
2,304
| | | | |
1,297
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Non-Performing Assets/Total Assets
| | | |
0.08
|
%
| | | |
0.09
|
%
| | | |
0.05
|
%
| | | |
0.08
|
%
| | | |
0.13
|
%
| | | | | | | | | |
|
Non-Performing Assets/(Gross Loans +OREO)
| | | |
0.10
|
%
| | | |
0.11
|
%
| | | |
0.05
|
%
| | | |
0.09
|
%
| | | |
0.15
|
%
| | | | | | | | | |
|
Non-Performing Loans/Gross Loans
| | | |
0.10
|
%
| | | |
0.11
|
%
| | | |
0.05
|
%
| | | |
0.09
|
%
| | | |
0.15
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Non-Performing Loans
| | | |
1214
|
%
| | | |
1096
|
%
| | | |
2302
|
%
| | | |
1373
|
%
| | | |
787
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Non-Performing Assets
| | | |
1214
|
%
| | | |
1096
|
%
| | | |
2302
|
%
| | | |
1373
|
%
| | | |
787
|
%
| | | | | | | | | |
|
Allowance for Loan Losses/Gross Loans
| | | |
1.19
|
%
| | | |
1.22
|
%
| | | |
1.23
|
%
| | | |
1.17
|
%
| | | |
1.21
|
%
| | | | | | | | | |
|
Classified Loans/Gross Loans
| | | |
0.29
|
%
| | | |
0.36
|
%
| | | |
0.30
|
%
| | | |
0.34
|
%
| | | |
0.21
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
Net Charge-offs
| | |
$
|
(75
|
)
| | |
$
|
(6
|
)
| | |
$
|
71
| | | |
$
|
28
| | | |
$
|
141
| | | | | | | | | | |
|
Net Charge-offs to Average Gross Loans *
| | | |
-0.04
|
%
| | | |
0.00
|
%
| | | |
0.04
|
%
| | | |
0.02
|
%
| | | |
0.09
|
%
| | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
|
* Annualized
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20171025005408/en/
OP Bancorp
Christine Oh
EVP & CFO
213.892.1192
Christine.oh@myopenbank.com
Source: OP Bancorp